Africa’s Industrialisation Needs Standards, Regional Value Chains – Minister

By Praisebell Rosemond Larbi

The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has emphasised that the government is pursuing comprehensive policies to support industrialisation through improved access to raw materials, harmonised standards, affordable financing, and regional value chains, as Africa seeks to move from resource extraction to value addition and build industrial champions.

She made the remarks during a high-level ministerial dialogue on “Accelerating Africa’s Industrial Transformation: Converting Extraction into Value and Building Industrial Champions” on the opening day of the Africa Trade Summit in Accra. The session was moderated by the Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Simon Madjie.

Ofosu-Adjare stressed that industrialisation will remain unattainable if African producers continue to operate under multiple and duplicative standards regimes across the continent. She noted that the lack of harmonised standards raises production costs, delays trade, and undermines competitiveness under the African Continental Free Trade Area (AfCFTA).

The minister cited examples where Ghanaian products, already cleared by national regulatory authorities, are subjected to fresh testing in other African countries, describing such duplication as a drain on time and resources for businesses. She argued that standardisation is one of the most practical tools for accelerating industrialisation and facilitating the free movement of goods across Africa.

Beyond standards, Ofosu-Adjare highlighted other major obstacles to industrial growth, including raw material shortages, high financing costs, limited land availability, and insufficient access to incentives. She emphasised that no factory can operate efficiently without a reliable supply of inputs, noting that industrialisation requires deliberate policies to ensure consistent raw material availability.

To address these challenges, the minister said Ghana has launched the Feed the Industry Programme, linking agribusiness production directly to industrial demand. Under the initiative, the government is mobilising land, youth, and irrigation infrastructure to ensure factories have a steady supply of raw materials, with targeted interventions to support export-oriented manufacturers.

She further revealed that Ghana has banned the export of certain non-ferrous raw materials to guarantee that value is added locally before export. This policy aims to secure inputs for domestic industries and strengthen local manufacturing.

On financing, Ofosu-Adjare noted that improved macroeconomic stability has helped stabilise interest rates, while institutions such as EXIM Bank are supporting export-focused industries. She called for innovative, blended financing options combining government support, private capital, development finance, and donor funding to ease the financial burden on manufacturers.

The minister also highlighted Ghana’s strategic focus on textiles and garments, pharmaceuticals, and automotive component manufacturing. She stressed that governments must prioritise sectors with competitive advantage and provide targeted incentives to help industries scale and operate efficiently.

Importantly, she advocated for regional value chains, urging African countries to coordinate production across borders rather than compete in isolation, to maximise shared strengths under AfCFTA.

Earlier in the dialogue, Fatou Haidara, Deputy Director-General of the United Nations Industrial Development Organisation (UNIDO), emphasised the need for African countries to move from fragmented national approaches to coordinated regional industrial strategies. She noted that AfCFTA cannot realise its full potential without industrialisation and urged a shift from sector-based thinking to regional value chain development, guided by market demand, infrastructure readiness, and proper sequencing.

Haidara also stressed the importance of industrial corridors, harmonised policies, and investment-ready projects to unlock long-term financing, noting that industrial policy, trade, infrastructure, energy, and finance must advance together.

For her part, Liberia’s Minister of Commerce and Industry, Magdalene E. Dagoseh, highlighted uneven political will, skills gaps, and slow implementation as major obstacles to Africa’s industrial integration. She noted that while policy decisions have been taken at the continental level, including commitments to value addition, execution has lagged, calling for greater pace, stronger coordination, and expanded access to financing.

The Ministerial Dialogue concluded with a shared call for African governments to prioritise collaboration over competition, harmonise standards, invest in infrastructure and skills, and deliberately link national industrial policies to regional and continental frameworks to unlock sustainable industrial growth.